Jobs in the Financial Services Industry
The financial services industry encompasses a broad range of activities that put money to productive use. It includes deposit-taking, credit intermediation, insurance and other institutions that manage risk. The sector is also comprised of the central bank; depository organizations such as commercial banks, building societies and mortgage banks or companies; insurance and pension funds; credit-card companies, consumer finance firms and payment systems; and all other institutions engaged in financial intermediation or asset management.
People who work in the financial services industry provide important essentials for the modern economy. They help consumers invest in the next big tech, secure a home loan or purchase an automobile. They can even insure against the unexpected and ensure that medical bills are covered. Without the specialized knowledge and skills required to perform these roles, our lives would be significantly less secure and convenient.
When most people think of jobs in the financial services sector, they picture high-profile careers like bankers and hedge fund managers. But the financial services industry is much broader than this, encompassing everything from community-based nonprofits that offer counseling services or money management advice to small community banks and beyond. In fact, according to Ryan Duitch, president and CEO of Arro, “financial services include everything that touches money.”
Financial services are the products and services that allow people to invest their savings and meet their financial goals. They can be as simple as a checking account or as complex as an equity portfolio. These products can be delivered via a digital channel, and many of them are designed to make the customer experience seamless. This includes everything from a mobile app for paying bills to the automated system used for transferring funds between banks.
Regulatory bodies are responsible for overseeing the integrity of the financial services industry and protecting customers. This includes establishing and enforcing rules that govern how financial services are provided. Regulatory agencies are also charged with promoting transparency and accountability to the public.
The financial services industry continues to grow and expand. In the United States, for example, recent deregulation has allowed some banks to offer investment, merchant and credit card services in addition to traditional banking. This has created opportunities for new entrants and existing players to offer innovative, integrated solutions to their clients.
This industry is also changing rapidly as new technologies emerge and disrupt the status quo. For instance, big technology companies such as Apple and Amazon are aiming to take a slice of the financial services pie by offering their own credit cards and other services. In turn, this will save them from having to pay interchange fees — a $90 billion annual source of revenue for issuers and networks. This is likely to increase competition for financial services businesses and drive them to innovate further. As a result, workers in this industry must be agile and adaptable to succeed.